Legislation unveiled by Sen. Tom Harkin (D-Iowa) Wednesday as part of a larger higher education package would allow private student loans to be discharged in bankruptcy.The Higher Education Affordability Act, introduced by Harkin as chair of the Senate Health, Education, Labor & Pension Committee, includes a host of items that aim to address college costs and debt. The entire proposal out of the Senate is largely a Democratic wish list for reauthorizing the Higher Education Act.
Private student loans are currently nearly impossible to discharge in bankruptcy, due to a bankruptcy reform package pushed through by Republicans in 2005.
"The upcoming reauthorization of the Higher Education Act, which the HELP Committee has been focused on for nearly a year, presents an historic opportunity for Congress to focus attention on college affordability and accountability, help borrowers with existing student debt, and increase transparency so students and families can make informed decisions," Harkin said in a statement. "This proposal is based on recommendations the Committee has received through its series of bipartisan hearings."
Read more @: Senate Proposal Would Restore Bankruptcy Protection For Private Student Loans
Should this be brought to the table and passed? In my opinion, yes. As always my position is, getting a higher education should not be a punishment, and this is a step in that direction